UGANDA, Mbarara | Real Muloodi News | Multiplex Constructions company is facing penalties due to delays in completing the Mbarara City road works, according to Officials from the World Bank and Ministry of Lands.
The works, under the Uganda Support to Municipal Infrastructure Development-Additional Financing (USMID-AF), were scheduled to end in April last year, but the contractor was granted multiple extensions due to valid reasons.
According to Isaac Mutenyo, the Project Manager of Uganda Support to Municipal Infrastructure Development Program (USMID), all extensions have been awarded, but despite this the contractor has failed to meet the deadline and is currently in the 100 days of liquidation damages.
After the 100 day period, some money will be deducted from the agreed contract sum. If the contractor still fails to meet the deadline, the contract will be awarded to someone else.
However, Engineer Moses Bossa, the Director of Multiplex Construction Company Limited, has denied being informed that the contract had entered the liquidation period. He claims that they had written to the project manager requesting an extension and were waiting for a response. Bossa attributed the delays to endless changes in the project designs.
Mutenyo has contradicted Bossa’s statement and claimed that the ministry has evidence that the contractor was fully informed of their contract obligations.
The delays in completing the Mbarara City road works have had a negative impact on the economic status of the city, as some businesses along these roads have been forced to close, according to Robert Mugabe Kakyebezi, the Mbarara City Mayor.
The World Bank and Ministry of Lands officials visited the road projects in the city to assess their progress in April. The purpose of the visit was to determine whether more funds could be allocated for the project.
The first phase of the USMID program is scheduled to end in December. The program has been releasing funds, but the World Bank has observed some issues with their distribution to the beneficiary entities, and acknowledge delays in making funds available to the implementing entities affects the delivery of the works.
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